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ABC Co. has a limited number of machine hours that it can use for manufacturing twoproducts, A and B.Each product has a selling price of

ABC Co. has a limited number of machine hours that it can use for manufacturing twoproducts, A and B.Each product has a selling price of P160 per unit but product A has 40% contribution margin and product B has a 70% contribution margin.One unit of B takes twice as many machine hours to make as a unit of A.Assume either product can be sold in whatever quantity is produced, which product or products should the limited number of machine hours be used for?

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